Electric Cars And Soda: Two Brazilian Stocks To Watch

Today’s article examines two Brazilian stocks. I’ve been visiting the country for about a month now, and wanted to share a few local investment ideas that you might find interesting.

Stock #1: COPEL ($ELP)

Utility stocks are generally considered boring-but-safe investments. The only downside to this, is that most American utility companies trade at high valuations.

Consolidated Edison is something of a blue chip utility company, and it is currently trading at a PE ratio of 18.

Companhia Paranaense de Energia (COPEL) trades at a PE ratio of 4.

COPEL is a Brazilian utility company that provides electricity to the state of Parana. This is a region with 11.5 million people. The company also supplies locals with Internet and phone service, as well as natural gas.

What’s interesting about this business is their use of alternative energy. COPEL operates 19 hydroelectric plants, 25 wind plants, and one thermoelectric plant. Anecdotally, I noticed several electric vehicle charging stations with COPEL branding on them. This is a good indicator that the…